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Completed a five-year strategic transformation to a 100% New York City portfolio by disposing of suburban assets and acquiring over $1 billion in high-quality Manhattan and Brooklyn real estate.
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Achieved 12 consecutive quarters of office occupancy above 90%, driven by a flight-to-quality trend where demand is concentrated in modernized, transit-oriented, and sustainability-leading buildings.
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Maintained pricing power with 18 consecutive quarters of positive mark-to-market lease spreads in the Manhattan office portfolio, reaching 6.4% in the fourth quarter.
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Leveraged a proactive balance sheet to execute all-cash acquisitions, such as 130 Mercer in SoHo, providing certainty of close in a volatile capital market environment.
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The Empire State Building Observatory delivered resilient performance through increased revenue per capita and domestic demand, offsetting a decline in international tourist visitation.
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Sustainability leadership continues to serve as a competitive advantage, reducing regulatory risk and energy costs while attracting tenants with high ESG standards.
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2026 FFO and same-store cash NOI are expected to remain flat compared to 2025, primarily due to temporary downtime between the FDIC lease expiration and the commencement of the LinkedIn backfill.
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Management expects to exit 2026 with higher overall occupancy and a 5% to 10% reduction in run-rate G&A expenses driven by compensation and cost-reduction initiatives.
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The 130 Mercer acquisition is projected to reach a stabilized yield of approximately 8% through the lease-up of a vacant 110,000 square foot office block in a supply-constrained submarket.
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Observatory NOI guidance of $87 million to $92 million accounts for a $2 million decline in fixed license fees, shifting the business toward more upside from recovering international visitation.
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Capital allocation will remain balanced between underwriting new NYC investments, strategic capital recycling, and opportunistic share repurchases.
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The disposition of Metro Center in Stamford marked the final exit from suburban commercial assets, with proceeds redeployed into higher-growth retail on North Sixth Street.
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Capital recycling activity since 2020 is estimated to generate $90 million in cumulative incremental property-level cash flow through 2030 due to lower CapEx requirements of new assets.
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The FDIC vacancy at the Empire State Building represents a $0.03 headwind to 2026 core FFO, though the space is already backfilled at favorable market rates.
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Management is monitoring potential New York City property tax increases, noting that existing lease structures typically allow for tax escalations to be passed through to tenants.
